Fiat Weighs IPO After Absorbing Chrysler

By

Sharon Terlep,

Christina Rogers and

Eyk Henning

Updated April 24, 2013 4:12 p.m. ET

Italian auto maker Fiat SpA is working on a plan to buy full control of Chrysler Group LLC and then launch a U.S. share offering of the combined company to replenish its balance sheet, people familiar with the matter said.

Fiat is discussing financing with a group of investment banks including J.P. Morgan Chase & Co., Bank of America Merrill Lynch and Deutsche Bank AG to help purchase the 41.5% of Chrysler now owned by a UAW...